What is the standard deviation of return of a four-stock portfolio (each stock being equally weighted)that produced returns of 20%,20%,25%,and 30%?
A) 2.15%
B) 3.15%
C) 4.15%
D) 5.15%

Question

Quizplus · Accepted Answer

The standard deviation of the portfolio is calculated by first finding the average return, then determining the variance by averaging the squared deviations from the mean, and finally taking the square root of the variance. The average return is 23.75%, the variance is 0.001725, and the standard deviation is approximately 4.15%.

What Is the Standard Deviation of Return of a Four-Stock